Member Sign In

You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating indiv idual securities.

If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.

POSCO-CFPC Advances Its Operation

POSCO-CFPC, a processing entity of Korean steel maker POSCO (PKX - Free Report) , recently declared a positive end to its efforts to provide various high quality services to its clients through its self-sufficient platform.

The center, located in Huanan, China, started its operation in 2004 with a capital base of $22.3 million, and it has several functional units such as Production, Carbon Steel Sales, Stainless Steel Sales, QSS Innovation and Management.

POSCO-CFPC’s sole purpose is to enhance the company’s presence in China by establishing a supply chain for POSCO’s manufactured steel products, along with lending support to its clients through several types of financial and operational assistance. Moreover, POSCO-CFPC has the capacity to process 100,000 tons of STS materials and 120,000 tons of carbon steel yearly through its two well-managed processing lines.

POSCO-CFPC is engaged in the promotion of numerous local brands in the Huanan province through establishing strategic partnership agreements with various major companies of the electronics industry, such as Midea, HITACHI, GLANZ and Vanward. Apart from the business perspective, the company is also highly dedicated to creating social awareness across the region.

The company’s brand acquisition strategy, sales execution, marketing and innovation capabilities helped to establish itself as the world’s third largest steelmaker and market leader in the industry. In addition, the company is continuously strengthening its foothold in the Chinese market through expanding its operations; it currently has 20 processing centers across China.

Steel demand in China is expected to grow by 4.0% year over year both in 2012 and 2013, according to the World Steel Association. To meet this end, the company will soon be launching a new processing center focused on galvanized steel sheets and steel alloy sheets in Foshan, Guangdong Province. For 2012, the company anticipates a 2.5% increase in revenue to KRW 70.6 trillion. Crude steel production is projected to rise 3.0% while investments should rise by 10.0%. However, it faces stiff competition from rivals such as Grupo Simec S.A.B. de C.V. , CLARCOR Inc. and Shiloh Industries Inc. (SHLO - Free Report) .

The Zacks Consensus Estimates for 2012 and 2013 are at $7.61 and $8.66, respectively. These represent a year-over-year decline of 29.14% in 2012 but a growth of 13.80% in 2013. We currently maintain an ‘Underperform’ recommendation on POSCO. The steel giant has a Zacks #4 Rank, translating into a short-term (1-3 months) ‘Sell’ rating.

Resources

Client Support

Follow Us

Zacks Research is Reported On:

Yahoo

MSN

Marketwatch

Nasdaq

Forbes

Investors.com

Morningstar

Copyright 2017 Zacks Investment Research

At the center of everything we do is a strong commitment to independent research and sharing its profitable discoveries with investors. This dedication to giving investors a trading advantage led to the creation of our proven Zacks Rank stock-rating system. Since 1988 it has more than doubled the S&P 500 with an average gain of +25% per year. These returns cover a period from 1988-2016 and were examined and attested by Baker Tilly Virchow Krause, LLP, an independent accounting firm. Zacks Rank stock-rating system returns are computed monthly based on the beginning of the month and end of the month Zacks Rank stock prices plus any dividends received during that particular month. A simple, equally-weighted average return of all Zacks Rank stocks is calculated to determine the monthly return. The monthly returns are then compounded to arrive at the annual return. Only Zacks Rank stocks included in Zacks hypothetical portfolios at the beginning of each month are included in the return calculations. Zack Ranks stocks can, and often do, change throughout the month. Certain Zacks Rank stocks for which no month-end price was available, pricing information was not collected, or for certain other reasons have been excluded from these return calculations.

Visit performance for information about the performance numbers displayed above.